Healthcare Regulatory Compliance: Michigan Anti-Kickback Statutes

1. Medicaid False Claims Act, Michigan Compiled Laws § 400.604

It is a felony to: (1) solicit, offer, or receive a kickback or bribe in connection with the furnishing of goods or services for which payment is or may be made under the Medicaid program; (2) make or receive the payment; or (3) receive a rebate of a fee or charge for referring an individual to another person for the furnishing of the goods and services. Violations are punishable by up to four years in prison, a fine of up to $30,000, or both.

2. Health Care False Claims Act, Michigan Compiled Laws §§ 752.1004-752.1004B

It is a felony to solicit, offer, pay, or receive a kickback or bribe in connection with the furnishing of goods or services for which payment is or may be made by a health care corporation or health care insurer. It is also unlawful to receive a rebate of a fee or charge for referring an individual to another person furnishing health care benefits. Violations are punishable by up to four years in prison, a fine of up to $50,000, or both.

• Rebate or Discount from Drug Manufacturer: A rebate or discount from a drug manufacturer or from a company that licenses or distributes the drugs of a drug manufacturer to a consumer for his or her own use does not violate the Michigan Health Care False Claims Act.
• Rebate or Discount from Medical Supply or Device Manufacturer: A rebate or discount from a medical supply or device manufacturer or from a company which licenses or distributes medical supplies or devices to a consumer for his or her own use does not violate the Michigan Health Care False Claims Act.

3. Public Health Code, Michigan Compiled Laws § 333.16221(D)(II)

Dividing fees for referral of patients or accepting kickbacks on medical or surgical services, appliances, or medications purchased by or on behalf of patients constitutes unethical business practices which may result in disciplinary proceedings. This provision applies to physicians and other health professionals.

4. Penal Code, Michigan Compiled Laws § 750.428

Any physician or surgeon who divides fees with or promises to pay part of his or her fee to or pays a commission to any other physician or surgeon or person who consults with or sends patients for treatment or operation, is guilty of a misdemeanor punishable by up to six months in prison or a fine of not more than $750. The first conviction may result in loss of license. A second conviction will result in loss of license.

5. Billing for Clinical Laboratory Services, Michigan Compiled Laws § 445.162

A person licensed to practice medicine shall not receive a fee or other remuneration from a clinical laboratory or intermediary for submitting specimens from a patient to a clinical laboratory.